Helix Resources updates investors on the complex status of its Gold Basin joint venture amid a hostile takeover bid by Canex Metals and a loan restructuring by Gold Basin Resources.
- Helix holds option to earn 40% in Gold Basin oxide gold project
- Canex Metals’ hostile takeover bid secures 49% but falls short of 66.7% threshold
- Legal challenge to takeover dismissed on jurisdictional grounds
- Gold Basin restructures USD 500,000 loan with reduced interest and secured mineral claims
- Helix maintains close contact with Gold Basin board, monitoring developments
Background on the Joint Venture
In April 2025, Helix Resources entered into binding agreements to earn up to a 40% stake in the Gold Basin oxide gold project, a strategically located portfolio of tenements within the prolific Walker Lane Gold Trend. This region is renowned for hosting world-class gold deposits, making the project a potentially valuable asset for Helix’s growth ambitions.
However, the joint venture’s progress has been complicated by external corporate maneuvers. Shortly after the agreements were signed, Canex Metals, a neighbouring TSX-V listed company, launched a hostile takeover bid for Gold Basin Resources, the vendor of the Gold Basin project. Canex’s tenements border Gold Basin’s to the east, but Helix’s management had previously assessed Canex’s holdings as lacking significant exploration upside or strategic value.
Hostile Takeover Bid and Legal Dispute
Canex’s takeover bid initially required acceptance by at least two-thirds of Gold Basin shareholders to succeed and to dissolve the Helix-Gold Basin joint venture agreement. Despite multiple extensions, Canex managed to secure only 49% acceptance, falling short of the 66.67% threshold. Notably, most of Gold Basin’s largest shareholders have rejected the offer, signalling confidence in the current management and strategy.
Complicating matters, a civil petition was filed in British Columbia by former Gold Basin directors holding a small share of stock, seeking to challenge the takeover on jurisdictional grounds. Both Gold Basin and Helix rejected this petition, citing that the joint venture agreement is governed by Western Australian law, not British Columbian jurisdiction. This legal stance effectively stalled the petition’s progress.
Loan Restructuring and Security Agreement
On January 19, 2026, Gold Basin announced a restructuring of a USD 500,000 unsecured loan originally provided by Charrua Capital LLC in 2024. The loan’s interest rate has been reduced from 15% to 9% for the first quarter of 2026, and Charrua Capital has agreed to forbear exercising its rights under the loan agreement until March 31, 2026.
Importantly, the loan is no longer unsecured. Four blocks of private mineral claims within the Gold Basin project have been pledged as security during the forbearance period. This arrangement will be lifted once Gold Basin resumes payments to Charrua Capital’s satisfaction. Executive Chairman Michael Povey holds a 20% beneficial interest in Charrua Capital through controlled entities, adding an interesting layer to the financing structure.
Helix’s Position and Outlook
Helix Resources continues to monitor the evolving situation closely and remains in regular contact with the Gold Basin board. The company has reaffirmed its commitment to transparency and will provide further updates as required under continuous disclosure obligations.
While the hostile takeover bid has not yet succeeded, the ongoing legal and financial developments introduce uncertainty around the future ownership and control of the Gold Basin project. Helix’s strategic interest in the project remains intact, but the outcome of these corporate maneuvers will be critical in determining the path forward.
Bottom Line?
Helix’s Gold Basin JV faces a pivotal moment as takeover and financing dynamics unfold.
Questions in the middle?
- Will Canex Metals revise its takeover strategy or increase its shareholding beyond 66.7%?
- How will the loan security arrangement affect Gold Basin’s operational flexibility and project development?
- Could Helix seek alternative routes to secure or expand its interest in the Gold Basin project?